NQ Daily Movements.
The term "The game is rigged" is a true one. There are those that would have you believe that the stocks follow a simple random pattern of greed and fear. Perhaps in a very long time frame measured in months this is true. The reason I say that is the area that is manipulated is a much bigger area.
You have heard me talk about this before (especially in oil) that certain areas hold price action. Sure they move a little above and below the area but in a general sense they stay within a range. At the moment the 63 area is holding oil. It won't move very far away from here. Especially to the upside.
Now today's action will show you that the shorter time frames are nothing more than price swings to stop hunt you out. See that there are five lines I drew on the chart for you but every one of them exceeds the previous low or high.
Why?
That is where the stops are. You will note too the big pull backs before they go through the previous high or low areas. The reason for this is the traders taking positions close to the top or bottom. They shake them out and then make the move.
Generally these are where all these time systems originate from. If you time a certain part of the day the price will generally move in a certain direction. While this can be true there is no guarantee. You have to see how the set up is occurring before you want to take a position. Like I have always said, "if you can't spot the stop hunt, then it will likely be you".
When you look at the chart below you can clearly see how much power the liquidity providers or market makers have to push price around. The algo's they use and the leverage they provide are pretty powerful to keep them winning.
This movement you see below is how traders generally take positions. The react to price and they think they see something that is NOT there. The patterns occur over and over again. It is why more experienced traders take advantage of less experienced traders.
There was one trade that I took towards the end of the day where price was moving up and I had a pretty good suspicion that new highs would be made to get all the stops behind the larger volume area. It worked well (it doesn't always) and at the time I saw the stop hunt area.
So all I am saying is really all I have ever said. You can't win this short term game unless you are on their side. You can't move the market and the worst thing you can do is give them a reason to run price against you.
Cheers!
You have heard me talk about this before (especially in oil) that certain areas hold price action. Sure they move a little above and below the area but in a general sense they stay within a range. At the moment the 63 area is holding oil. It won't move very far away from here. Especially to the upside.
Now today's action will show you that the shorter time frames are nothing more than price swings to stop hunt you out. See that there are five lines I drew on the chart for you but every one of them exceeds the previous low or high.
Why?
That is where the stops are. You will note too the big pull backs before they go through the previous high or low areas. The reason for this is the traders taking positions close to the top or bottom. They shake them out and then make the move.
Generally these are where all these time systems originate from. If you time a certain part of the day the price will generally move in a certain direction. While this can be true there is no guarantee. You have to see how the set up is occurring before you want to take a position. Like I have always said, "if you can't spot the stop hunt, then it will likely be you".
When you look at the chart below you can clearly see how much power the liquidity providers or market makers have to push price around. The algo's they use and the leverage they provide are pretty powerful to keep them winning.
This movement you see below is how traders generally take positions. The react to price and they think they see something that is NOT there. The patterns occur over and over again. It is why more experienced traders take advantage of less experienced traders.
There was one trade that I took towards the end of the day where price was moving up and I had a pretty good suspicion that new highs would be made to get all the stops behind the larger volume area. It worked well (it doesn't always) and at the time I saw the stop hunt area.
So all I am saying is really all I have ever said. You can't win this short term game unless you are on their side. You can't move the market and the worst thing you can do is give them a reason to run price against you.
Cheers!
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